DLO - dLocal stock jumps 4.0% after BofA initiates with a Buy rating

dLocal stock (DLO) climbs 4.0% after BofA Securities analyst Jason Kupferberg initiates coverage of the payments technology company with a Buy rating as the company helps merchants solve the complexities of processing ecommerce payments in emerging market regions."DLO has an enviable customer base comprising some of the largest and fastest-growing enterprises in the world (i.e. AMZN and GOOG) and a very attractive blend of organic growth and profitability, both well in excess of peers," Kupferberg writes in a note to clients.Risks include LatAm representing 90% of DLO's total payment volumes and the company's 10 biggest companies comprising 60% of its total revenue. While those proportions have been declining, it could take time for DLO to diversify, the analyst said. The loss of a single customer could have a material impact on its financials.Sets price target at $55, based on 50/50 blend of BofA's CY22 EV/revenue multiple and DCF methodologies.DLO stock popped more

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dLocal stock jumps 4.0% after BofA initiates with a Buy rating